Biopharma Supports Nearly 4.5 Million US Jobs, Says Report

May 18, 2016
By Pharmaceutical Executive Editors

The biopharma industry supported nearly 854,000 direct jobs and another 3.5 million jobs and more than $1.2 trillion in economic output in the United States in 2014, according to new research prepared for the Pharmaceutical Research and Manufacturers of America (PhRMA).

The report, which analyzed state and national data across the large-scale biopharmaceutical sector supply chain, highlights how the discovery, development and delivery of innovative medicines translate into higher-wage jobs, increased tax revenue and greater economic output in our local communities.

Key findings from the examination by TEConomy Partners, LLC of the broad biopharmaceutical value chain include the following:

  • Close to 4.5 million U.S. jobs. The biopharmaceutical sector's high job multiplier—for every one job, another 4.21 are supported across the economy—translates into nearly 4.5 million jobs in the United States in 2014, including close to 854,000 direct jobs and another 3.5 million additional jobs through vendors and suppliers to the biopharmaceutical sector and with businesses that serve its employees in sectors ranging from transportation and construction to health care and information technology.
     
  • More than $1.2 trillion in economic output. The biopharmaceutical sector's economic output, which represents the value of the goods and services produced by the sector, totaled more than $558 billion in the United States in 2014. The sector also supported another $659 billion through its vendors and suppliers and through the economic activity of its workforce, for a total of $1.2 trillion.
     
  • Nearly $311 billion paid in wages and benefits. U.S. workers in jobs supported by the biopharmaceutical sector were paid a total of nearly $311 billion in wages and benefits in 2014.
     
  • Annual average compensation of $123,108Employees in direct biopharmaceutical sector jobs earn an average salary of$123,108, more than twice the average $57,149 annual salary for all other U.S. jobs. These employees provide an average of$653,971 in annual economic output, compared to $171,600 for employees across all U.S. job sectors.
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